Make Sh*t Happen

Episode 167 - Three Minute Thursday ( It's not how much money you make is how much money you keep )


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This Three Minute Thursday, Episode number 167. So I read this somewhere. It's not how much money you make is how much money you keep. So I always see business owners, you know  They're entrepreneurs. They say, hey, I made 1.9 million dollars Well, you did not make 1.9 million. Your revenue was 1.9 million is how much you keep is what you made. And then you got to remember, whatever you made after the bottom line, you still got to pay Uncle Sam. So a lot of people just say, oh, I made one 9 million. My company is making $30 million. Well, no, you forgot to say your company is making $30 million in sales. But then your company got to pay the overhead, the rent, the mortgage, the insurance, the employees, the employee benefits, the gross Mark. I mean, there's a cost of goods. So your company sold 30 million. But the goods cost you $15 million. So your company did not make 30 million because you had 15 million. You had to make. Let's just say, for example, you know what? I'm a photographer and I made $150,000 this year. No, you didn't. You still have to buy equipment because your camera is going to get worse. You got to buy SD cards. You got to buy new lenses. You got to constantly evolve. And there are fixed costs. Guys, you went around in your car and two venues. You forgot all about that. Hello. It costs you money to get there, you had to buy a new bag. It costs you money. Every business has some kind of expenses. So it's not what you keep. It's not what you earn. It's what you keep is what you really earn. And don't forget, you know, your company sold $30 million. You ended up making, let's say $3 million. Don't forget, don't forget. Still gotta be Uncle Sam. You still got to pay.
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Make Sh*t HappenBy Sammy Z

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